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Friday, May 17, 2013

Estate Planning for Digital Assets Poses Some Questions

Over this three post session I’ll venture into a topic
that most of us are familiar with but probably not prepared for.We all use technology in various ways.Some of us are more active using online resources
than others.Have you stopped to
consider what will happen to your digital assets upon your death?

“Email, photos, videos, Facebook accounts—they’re the
elements of your new digital life.In
fact, almost without realizing it, we have shifted toward an all-digital
culture.Future heirlooms like family
photos, home movies, and personal letters are now created and stored in digital
form.And increasingly they’re stored
online at popular sites that might not be accessible to your loved ones after
you pass away.”

In a recent presentation at the National Association of
Personal Financial Advisors (NAPFA) conference Mr. Carroll describes four
different types of digital assets that should be considered.

Contents of computers and devices such as desktop computers, laptops, tablets, mobile phones and other similar devices.

Email including incoming mail, stored mail and sent mail.

Social networking and websites like Facebook, Twitter,
Flickr, Pinterest, LinkedIn and others.

Online business and account management.This could include sites such as eBay, Etsy,
blogs, advertising, PayPal, online banking and bill payment services.

Do digital assets have value?Think about email in particular.How much of your day to day routine involves
email in one way or another?All online
accounts use email as a hub for management of your account.I receive bank statements and ebills,
reminders from the bank, reminders of service from the exterminator, emails
from the kids teachers and principals, password reset requests, order
confirmations and travel itineraries to name a few.Not to mention all of the personal interactions
with friends, relatives, volunteer organizations and clubs the kids are
involved in.What would happen to all of
these things upon my death? Is my spouse
completely prepared to take over the daily management of our lives in my
absence without access to all of these digital assets?Unfortunately the answer for me is no.I suspect the answer may be the same for many
of you.

The issue is even more imperative if you are one of the
many entrepreneurs who operate a small business through sites like Etsy, eBay
or others.Is there someone who knows
how to wrap up your business dealings?How
would you access the business records held as part of the history of these online
accounts?

Each site has a “terms of use” section with details about
how the account is handled should a death occur.How would a person navigate the requirements
of each account when they all differ slightly in what is required upon death
and what they will provide?

Basically I have asked a lot of questions and offered few
answers.I will be exploring different
options in future posts.Stay tuned…